Key Contributions of Buyers in the Successful Completion of the Company Budget - Assignment Example

What Are the Key Contributions of Buyers in the Successful Completion of the Company Budget? The links of buyers on myriad operational activities provide great influence in budget allocation. Since the responsibility of overseeing interrelated functions concerning a product range within a particular category which includes selection, sales and profitability lies on the buyer, creating the company budget entails major involvement of the buyer. Starting from the analysis of potential movements in the market, the buyer assures that buying operations fit within the overall financial budget by providing the appropriate information during the planning stage of the company when budget setting takes place. Historical analysis is a useful tool for the buyer in making judgments that concern market developments particularly on the acquisition of supplies. Aside from looking at past sales, the buyer also looks at expectations of price fluctuations and movements taking into consideration various factors that affect the market value of production inputs based on opportunities present in the market. With market analysis, the buyer provides the information necessary for the generation of the budget. Trading operations of the company depend on a structured, achievable and accurate budget derived from sound information and because the buyer is involved in liaising with other departments and suppliers, the understanding of the buyer in relation to the market is the key for presenting the outline of finances. Through thorough research and evaluation of product and price trends, the buyer assures that the company budget sustains organizational activities. A framework on finances is formulated with the participation of the buyer to have a better forecast on expenses. In formulating the framework, the buyer collaborates and liaises with the merchandiser for propositions on spending, stocks and markdowns. The framework aids in developing a budget in which decisions of the buyer regarding supplies is based on. It is important that the buyer creates the precise buying budget to assure a perfect match on the overall financial budget. Planning of the budget and its allocation is the backbone of range planning in which commercially acceptable collection of garments are compiled. The collection of garment supplies revolve around the budget constraints set by the company. Through budget allocation, decisions on acquisition take place. In the process of allocation, the paths of the company money is traced in every aspect it is used. Money spending decisions of the company in the course of acquisitions of necessary supplies provide an outline of the range structure. With the range structure, the buyer makes decisions on the selection of product ranges aimed at a specific market that will make the department operations together with other related business functions run smoothly and in line with the set objectives of the company. What Are the Key Inputs of Buyers into the Promotional Calendar? In the pursuit of accomplishing the series of events planned by the company to make products known to the market, the buyer is involved and functions in coordination with the marketing department. The buyer ensures that purchasing activities complement the visions of the marketing department as set on the promotional calendar. This is undertaken through an efficient and effective planning of ranges to assure that actions of the buyer in relation to the collection of garments for the specified period coincide with what the marketing department is trying to pursue. Promotion is an essential factor in the success of the fashion products of a company since the activity provides the target market with the vital information regarding the products offered to them. Brand awareness and brand recall is instituted in the course of promotional undertakings of products targeted to be sold. With the promotion of a product, demand is expected to be created and as a result boost sales. The impact of the promotional campaign whether in print advertisements or through commercials can only be realized effectively when the store is adequately stocked to cope with the demand. Meeting the demand of the market in turn translates to the optimisation of sales and range success. The buyer is the company entity assigned on the responsibility of liaising with suppliers and through supplier coordination the buyer assures the availability of production inputs. It is the buyer who ensures that the supplier is fully aware of the planned promotional events for the ranges of the company. By providing the suppliers with the information on the time constraints involved in the activities for promotion, the buyer alerts the suppliers on the timely delivery of goods needed for the promotional activities to push through on schedule. Included as parts of promotional activities are sales events and in store activities like fashion shows, blue cross days and customer evenings. A crucial factor in the overall promotional strategy is timing. The buyer has influence on the schedules of the promotional activities which makes the promotional calendar partly dependent on the buyer. In order to hit a date in the promotional calendar, it is critical to establish a date for the launch and work backwards to ensure timeliness. In working backwards, the buyer cooperates with the merchandiser and product developer to plan markdowns as well as to assure that the new range will be ready in time by hitting key dates in the critical path. Working backwards entails the buyer to monitor stocks so that old stocks are guaranteed clear on the launching date to accommodate the supply of new stocks. The buyer manages the operations for a systematic organization of the promotional calendar. How Do Buyers Translate Fashion Research for Their Customers? Fashion buyers select the compilation of garments that is commercially acceptable for the specific target market. Commercial viability is a key element in the selection of a product range. A product range is chosen based on the ability to sell enough quantities and achieve the profit margin expected by the retailer. Customer preference is the primary factor that drives the demand of the product range. Planning is very crucial in determining the appropriate product range since fashion tastes vary with time. Successful selection of a product range requires the identification of relevant fashion ranges taking into account other crucial operational activities. Since the buyer manages the overall process involving selection, sale, and profitability of a product range within a garment type, the buyer translates fashion research into a commercial product valued by customers. Research covers numerous aspects of the fashion arena. Through the analysis of market trends, buyers undertake the creation of product ranges with customer value. Buyers complement their creativity in fashion with the demands of the market as known through research. Product ranges that possess the qualities valued by customers are developed by buyers. Market study is used to predict the customer requirement for quality and through research buyers could actually generate a product range with the best possible quality. Standards are maintained by buyers on quality to provide a reputable brand which is needed to maintain the customer base. Considering quality, buyers take into account research results on fabrics and yarns used in garments, the finish of the clothing and the wearability and performance of the garment to provide the best products. It is necessary for the buyer to be commercial and the product range is chosen to conform to the market needs. To be commercial, a product must appeal to the preferences and tastes of the target customers. Buyers utilize the information from various researches to produce the garment demanded by the market. The buyers put into production the knowledge obtained from analysing trends, market movements and customer preferences on fashion by incorporating the necessary ideas in the creation of designs. Value is added on products when customer requirements are met. With the knowledge of market preference on relevant aspects of the product known through research, the buyer selects the product range appropriate for the needs of the customers and in turn produces value for them. What Do Buyers Require From Core Suppliers In Order to Get a Range/Ranges Successfully Delivered as Ordered? Buyers coordinate with other organizational departments to ensure that business operations are on the right track. Aside from internal coordination, buyers liaise with suppliers to maintain sufficient quantities of necessary production inputs. The success of a product range delivery is influenced by the conduct of suppliers. It is therefore imperative for the buyer to select the best suppliers in terms of established standards for a product range to be delivered as ordered. Suppliers are chosen by buyers depending on the appraisal of their ability to match the needs of the product range operations. There is a need for suppliers to be reliable in order to be chosen by the buyer as a provider of production inputs. Reliability refers to the ability of the suppliers to deliver the promised goods at the agreed date, product specification and product quality. In assessing suppliers, buyers trace historical performances. The past performances of suppliers show their ability to meet the demands of the buyer in the present and in the future. Buyers look at the availability of products offered by suppliers as a factor in considering their participation in the operations. There is preference over suppliers that have the ability to provide the necessary production inputs. Price charged by suppliers on their products is considered as well and buyers choose suppliers with low cost products since buyers work in constrained budgets. Production quality matters in supplier selection as high quality inputs are necessary to produce high quality products. Suppliers meeting the standard production quality are chosen to provide customers the best garment. For suppliers to be chosen by buyers, they should provide a high quality of service as seen on designs and sampling. To meet with the timeliness criteria of buyers, suppliers need to be excellent in terms of the speed of production and delivery. Suppliers serve as an important factor in turning a buyers product range into reality. To be able to form a strong, effective and lasting partnership with the buyers, suppliers need to be trusted. It is necessary that the supplier understands the buyer, the market, and the competitors because the supply chain is crucial in ensuring the quality and continuity of ranges. In essence, the supplier is required to be well equipped with the necessary knowledge on the activities and responsibilities of buyers. What Are The Key Areas Where Buyers and Merchandisers Need To Work Together With Particular Reference To The Range Plan? Fashion buyers perform the ultimate liaison duties in the organisation. In the performance of liaison duties, buyers interact with different departments. Buyers work with merchandisers in various operational activities to successfully develop a product range. The interaction of buyers and merchandisers results into a smooth undertaking of departmental functions. It is evident from the buying structure the work association of the merchandisers and the buyers. The Buying Structure As seen in the preceding diagram, the functions of buyers are interrelated with thye functions of merchandisers. The buyer decides on the styles to be bought and negotiates all details with suppliers in order for profit margins to be achieved. Decisions of the buyer depends on the requiorements as set by the choice of range. Merchandisers, on the other hand, work closely with the buyers in planning the stock mix taking into account trend analysis and anticipated sales. Like the buyers, the merchandisers study the market and obtain information regarding market movements to maintain the necessary stocks of products needed in the production and creation of the fashion ranges. It is the merchandisers who manage the budget of the operations to meet with the financial requirement of the planned range. The merchandisers control as well the stock intake of production and proper allocation of resources to ensure that profitability is maximised. In the planning stage of the fashion range project, the budget pertaining to the range is planned though the combined efforts of the buyers and merchandisers. The coordination of the buyers with the merchandisers results to the accomplishment of a range budget that fits into the overall financial budget. A framework for the fashion range budget is created by the buyers and merchandisers for spending, stock maintenance and markdowns. Budget allocation is the bones of range planning. It makes the first stab in deciding where the money will be spent in the operations relating to the range and gives and outline on the range structure. Buyers and merchandisers also work together for an effective promotional calendar needed for the market launch of the fashion range. In order to hit the launch date, it is necessary for the functional departments to work backwards. The buyer ensures the maintenance of the proper stocks for the new range with the aid of the merchandiser. Both the buyer and the merchandiser work to plan the markdowns for the new range. Together, the buyers and the merchandisers assure that the processes involved in the new range hit the critical path. Bibliography Brittain, P. (2004), Retailing an Introduction, FT Prentice Hall Crosby, Philip B. (1979), Quality is Free: The Art of Making Quality Certain, New York: New American Library. Elliot, F. and Rider J. (2003) Retail Buying Techniques, Management Books Gowerck, H. (2001) Fashion Buying, Blackwell Science Jackson, T. and Shaw, D. (2000) Mastering Buying and Merchandising, Palgrave Kunz, G. (2005), Merchandising Theory: Principles and Practice, Fairchild Books Leenders, M.R., Nollet, J. and Ellram, L.M. (1994), "Adapting Purchasing to Supply ChainManagement", International Journal of Physical Distribution & Logistics Management [IPD], Vol. 24, Issue 1, pp. 40-42. Varley, R (2005) Retail Product Management, Routledge Read More